Mutual Covenant
- A permanent agreement between neighboring property owners controlling the future use of their lands through restrictions accepted by all the participants. A mutual covenant may qualify participants for a reduction in property and estate taxes, but the loss in market value of the properties does not qualify as a charitable deduction on income taxes.
Common example: Common open space in a planned neighborhood [Source: Landowner Options, Land Conservancy of North Kingstown, http://www.lcnk.org/lcnkPage.cfm?sec=17&opt=0#cov]
